One of the biggest hurdles many entrepreneurs face with getting their small business off the ground is accessing capital. What are options are available? Loans for small business startups can be used for a variety of purposes, such as working capital; purchase of equipment, supplies, inventory, or office furniture; and the acquisition or construction of real estate.

While small businesses are the primary driver of job growth in the U.S., they are more likely to encounter hurdles with accessing capital. So, how can a visionary with an idea obtain financing to bring them one step closer to realizing their dream of owning a small business? Here are several options for consideration.

Option Description
Microloan The U.S. Small Business Administration assists small businesses with obtaining loans. Through partnerships with lenders, SBA offers microloan programs with up to $50,000 in financing available to qualified borrowers.
SBA 7(a) Loan The SBA also offers financing for business owners to bring them one step closer towards realizing their dream. Note: An SBA 7(a) loan is more difficult to obtain for a startup and the qualifications are more rigorous, resulting in a longer lead time to finalize.
Credit Card A small business credit card can assist with funding initial smaller investments, such as supplies, furniture, equipment, etc. While not the least expensive option, depending on the interest rate charged by the financer, it can serve as a last resort for gaining access to funding.
Personal Loan A personal loan is another viable option for small business owners with excellent personal credit and healthy cash flow. This type of loan is often used for small investments during the early stages of starting a business, i.e. To purchase a vital piece of equipment.
Grants Grants from private foundations and government agencies are another worthwhile option for tapping into startup funds. This possibility is not always easy to obtain; however, the capital is free, thus it may be worth the effort for some business startups.
Capital Regional Development Council (CRDC) The CRDC offers non-traditional financing for small businesses in NH with a need for working capital, real estate acquisition and equipment. The organization also offers SBA 504 loans statewide with low down payments, below-market, fixed interest rates along with long-term financing of up to 20 years.
Community Loan Fund The Community Loan Fund offers flexible financing and creative solutions to assist small businesses. One caveat to this option is it requires 12 months of revenue, as well as a business plan outlining the need for capital.
Business Finance Authority (BFA) The NH Business Finance Authority is another possibility for accessing loan programs for budding small business startups. Their Capital Access Program is tailored towards business startups in search of loans up to $200,000 through participating lenders, including Franklin Savings Bank.


While this list in not all-inclusive, it provides a starting point for entrepreneurs with a vision and a need for capital to bring them one step closer to opening their business. If you need some assistance with obtaining financing to support your business goals, contact one of our commercial loan officers today at 1.800.372.4445.

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Written by Dawn Beers

Dawn Beers

Dawn heads up our marketing department where she is responsible for the general oversight and management of the Bank’s marketing and public relations initiatives. This involves managing the planning, organizing and directing of our advertising, public relations, product development, sales promotion and research efforts.

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